Parlay odds reveal how much you’ll win when making these risky bets. They’re crucial for deciding when the payoff is worth taking on the added risk of parlays. After all, a parlay pays big but also comes with high juice (a.k.a., vig).
We’ll discuss how you can calculate parlay odds and determine your payout potential. You’ll also learn about hedging parlays, deciding when they’re worthwhile, and tips on increasing parlay winnings.
By the end, you’ll have a good idea on when to place these wagers or skip them based on the odds.
A parlay is a unique bet with two or more outcomes (a.k.a., legs) combined in the same wager. For example, you might put Miami Dolphins +6.5, Patrick Mahomes 300+ passing yards, and Falcons vs Saints over 50.5 on a ticket.
You must win every leg for a successful parlay, which greatly increases the risk factor. You’ll collect a large payout when winning, making parlays more attractive despite the risk.
The payout potential increases as you add more legs. A 2-leg parlay at -110 odds per selection, for instance, would pay $26.45 for every $10 successfully wagered. Meanwhile, a 4-leg parlay with the same odds would pay $122.83 for every $10 wagered.
Most online sportsbooks also offer same-game parlays (SPGs), where you combine two or more selections from the same contest. An example would be a 2-leg SPG featuring Anthony Edwards 30+ points and Minnesota Timberwolves to win.
Each bookmaker has specific rules on what you can and can’t add to an SPG. Generally speaking, though, moneylines, spreads, totals, and props are fair game.
Calculating Parlay OddsYou should always consider the potential payout before making a parlay bet. This is where knowing how to calculate parlay odds comes into play.
You multiply the odds of each leg to determine the overall price. Unfortunately, American odds don’t work for these calculations—you must convert them to decimal format. Here’s a resource on converting odds if you need help.
Once you understand these conversions, you’re ready to calculate parlay odds. Here’s a simple example involving a 3-leg parlay at -110 odds:
At +597 odds, you’d win $59.70 for every $10 successfully risked.
Of course, parlays don’t always work out so cleanly. You may find attractive player and team props with varying odds that you want on your ticket.
Let’s look at a detailed example involving a 4-leg parlay:
This parlay would pay $115.30 for every $10 wagered when you’re successful. It illustrates the allure of impressive parlay payouts.
How to Hedge a ParlayYou might find yourself in situations where hedging a parlay is attractive. The most common example is when everything rides on your last selection.
Let’s set up an example:
Now that we know the scenario, let’s look at a formula for hedging parlays:
As shown above, you must convert the American parlay odds into decimal format. Let’s plug our numbers into the formula:
Here are the two possible scenarios for our example:
You’ll collect a $175 hedge profit no matter which side wins the game.
Of course, you can always adjust the hedge bet based on your goals. You might lower the Bears wager in pursuit of a larger parlay profit, like in this example:
Parlay hedging is similar to arbitrage betting (a.k.a., arbing) in certain ways. The latter involves wagering on all sides of a matchup, while using price differences at multiple sportsbooks to guarantee a profit.
Arbing and hedging both require calculations for success. Arbitrage betting sees you calculate exactly how much to wager on each outcome to lock in profits. Hedging requires using a formula to determine the hedge bet size, which can be adjusted based on your goals.
These strategies also reduce the typical variance involved with sports betting. When done right, arbing guarantees profits regardless of the winning side. Hedging does the same while providing insurance in case the final leg of your parlay loses.
Arbitrage betting and hedging aren’t completely the same, but you can see how there’s crossover appeal between them. If you’re interested in arbing, you can check out our arbitrage betting section.
When to Use ParlaysParlays get a bad rap due to potentially high vig, a topic we’ve covered in the Nerd Nook. That said, you’ll see many experts generally recommend avoiding these bets.
However, parlays can still be interesting under certain circumstances. Possible scenarios when you might think about a parlay bet include:
No parlay advice can guarantee wins, but certain strategies will boost your chances of success. Here are several tips on how to win with parlays.
You certainly don’t want to pay more vig to sportsbooks. Unfortunately, the juice on parlays can be brutal, especially when 4+ legs are involved.
For reference, a bet with two -110 selections sees the losing side pay 10% juice to the bookmaker. This translates roughly to a 4.5% overround, or the sportsbook’s theoretical profit margin on the overall betting action.
Single bets like moneylines, totals, and spreads typically have reasonable vig. Parlays, on the other hand, can feature extremely high juice as the number of legs increase. We suggest sticking with 2- and 3-team parlays as much as possible to avoid higher margins.
Here’s a quick reference for common parlay overrounds at -110 odds:
| Legs | Margin | Probability of Winng |
|---|---|---|
| 2 Legs | 9% margin | 27.5% probability |
| 3 Legs | 12.5% margin | 14.4% probability |
| 4 Legs | 15.4% margin | 7.5% probability |
| 5 Legs | 18.3% margin | 3.9% probability |
| 6 Legs | 20.7% margin | 2.1% probability |
| 7 Legs | 22.8% margin | 1.1% probability |
| 8 Legs | 24.8% margin | 0.6% probability |
| 9 Legs | 26.4% margin | 0.3% probability |
| 10 Legs | 28.5% margin | 0.2% probability |
Parlay hedging is a good way to reduce variance associated with these bets. After all, you probably don’t feel like waiting for payouts, given that even 2-leg parlays are tough to win.
However, you should consider that the hedge bet also comes with juice. When hedging at -110 odds, for example, you’d face a 4.5% margin on top of the parlay’s margin.
You won’t feel this impact in the short run, especially when you’re locking in profits through hedges. The issue comes in the long term, though, as you slowly cover more juice on the parlay and hedge.
We’re not saying to completely ignore parlay hedging, but be aware of the extra juice and long-term risk.
An easy way to boost your parlay winnings is by taking advantage of quality promotions. Common parlay promos at betting sites include:
Some parlay bettors are all over the place, jumping between sports and adding all different types of selections. While this approach can be entertaining, it doesn’t usually lead to much success.
We recommend specializing in certain sports and betting markets when creating your parlays. For example, you could become an expert in NFL and NBA parlays involving team props and player props.
This specialization helps you develop expertise and familiarity with specific leagues and players. With enough time, you’ll be better able to spot favorable parlay odds in these markets.
You should definitely know how to calculate parlay odds if you’re serious about this type of betting. Luckily, the calculations aren’t difficult to perform. Just convert American odds to decimal, multiply each leg, and convert the overall decimal odds back to American.
Once you understand parlay odds, you can move on to strategies like hedging and focusing on specific parlay markets.
If you’re interested in putting your parlay knowledge to the test, check out our favorite sports betting sites. These sportsbooks offer competitive parlay odds and related promos like odds boosts and parlay insurance.
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